Sask small biz negatively impacted by $908 million in tax hikes

The 2017 Sask Budget increased the Provincial Sales Tax (PST) from 5 to 6 per cent and expanded the PST base to a number of sectors including insurance premiums, construction labour, and restaurant meals and snack foods. This is among the largest tax hike in the province’s history.

Since the Budget was introduced, CFIB heard from hundreds of business owners, like you, concerned about the impact of these tax hikes. That’s why CFIB decided to survey its members to get your feedback.

Action:

March 30-April 10, 2017: CFIB conducted the Saskatchewan Post-budget Survey and received 292 responses from Saskatchewan business owners.

While there are those that say the recent tax increases will have a minimal impact on the economy, it’s clear Saskatchewan small business owners have a very different perspective and are worried about the potential fallout.

70 per cent of respondents agree the PST rate increase and expansion of the PST base announced in the Saskatchewan Budget will hurt Saskatchewan’s overall competitiveness, 20 per cent disagree and 10 per cent don’t know.

The specific harmful impacts include:

Other highlights of CFIB’s Post-Budget survey:

Instead of raising taxes, 81 per cent of respondents agree the Saskatchewan government should have further reduced the size/cost of government, 15 per cent disagree and 4 per cent don’t know.

90 per cent of Saskatchewan small business owners agree that as the province’s finances improve, the government should reduce the PST, 9 per cent disagree and 1 per cent don’t know.

Mixed views on tax relief:

When asked what impact the Personal Income Tax Reductions will have on their business, 56 per cent of Saskatchewan small business owners say it will be positive, 41 per cent did not know and 3 per cent say it will be negative.

Similarly,when asked about the impact the General Corporate Income Tax Reductions (applicable to business income in excess of $500,000) will have on their business, 46 per cent of Saskatchewan small business owners say it will be positive, 33 per cent say it is not applicable, 17 per cent did not know and 4 per cent say it will be negative.

Next Steps:

CFIB’s survey results reveal the significant impact the Budget’s tax increases will have on Saskatchewan entrepreneurs. That’s why CFIB will expect the provincial government to reduce the PST when the province’s finances improve.